Who pays Diminished Value?

The insurance company is responsible to pay Diminished Value. If the accident was your fault, it is a first party claim, and your insurance company is responsible. If the accident was someone else's fault, it is a third party claim. In this case, the claim is not paid out from your insurance. Diminished Value is paid from the other person's insurance comapny. However, in a first party claim, some insurance companies disallow Diminished Value claims. Refer to your policy for details.

Other Diminished Value FAQs

Who pays Diminished Value?

The insurance company is responsible to pay Diminished Value. If the accident was your fault, it is a first party claim, and your insurance company is responsible. If the accident was someone else's fault, it is a third party claim. In this case, the claim is not paid out from your insurance. Diminished Value is paid from the other person's insurance comapny. However, in a first party claim, some insurance companies disallow Diminished Value claims. Refer to your policy for details.

The insurance company says the vehicle has been repaired properly, and as a result, not suffered Diminished Value. Is this true?

No. The vehicle is still worth less regardless of it being repaired properly due to the accident. The fact is, you cannot sell it for the same amount as a like vehicle which has not been in an accident. And, no dealership will take it in as a trade in for the same amount. Insurance companies have tried to avoid paying on Diminished Value claims for years and they do and say whatever will justify their position. Diminished Value case law has been around for nearly 100 years. We can collect from the insurance company!

Will my insurance rates go up?

Not if the other party was at fault. The money is collected from their insurance company, not yours.